Vinovest Review 🍷

Summary

Vinovest is a platform for investing in a managed portfolio of fine wines. Vinovest builds a portfolio of wines based on your risk profile, and stores and manages it for you across a network of insured facilities around the world.

  • Website: https://vinovest.co
  • Investment Types: Fine Wine
  • Sectors: Fine Wine
  • Minimum Investment: $1000
  • Advertised Returns: 9-12%
  • Open to all investors

Pros

  • Open to all investors
  • Low market correlation
  • Portfolio fully managed, including storage
  • Can be liquidated any time (no pun intended)

Cons

  • Short track record
  • Minimal information on how your portfolio is selected
  • Selling portfolio can take 6 weeks or longer
  • Company Description: Diversify your portfolio by investing in the world's most sought-after wines. Professionally stored for you, and always insured.
  • Website: https://vinovest.co
  • Vinovest on Twitter

Vinovest logo



Overview

Vinovest is not, technically speaking, a “crowdfunding” platform. But many investors exploring crowdfunding and online alternative investments are looking for opportunities in exotic assets with a low market correlation. Vinovest makes investing in fine wines more accessible to everyday investors through an online platform and fully managed portfolios. They’ll even send you some of your wine to drink (insert joke about liquidating your portfolio…).

Investors with more experience in fine wine investing (and more to invest) can choose their own portfolio, which Vinovest manages.

Types of investments Vinovest offers

Vinovest is an online platform for investing in actual bottles of fine wine, which Vinovest stores for you in a climate-controlled, secure and insured facility, which you are even invited to visit (you can also request photos).

What do you get when investing with Vinovest?

Because you’re buying actual bottles of wine, there is no “security” type when investing on Vinovest. You own actual bottles of wine, and Vinovest adjusts their values based on current market conditions, which you can monitor online through the Vinovest platform.

Vinovest fee structure

Vinovest charges an annual fee of 2.85% that covers buying/selling the wines in your portfolio, storage, insurance, and overall portfolio management. Fees go down a bit with a higher commitment, dropping to 2.5% at a $50,000 investment amount.

Potential returns and cashflow

There is no ongoing cashflow on investments made with Vinovest. Investors receive a return (if any) when they sell their wine. Vinovest also regularly rebalances your portfolio to match your stated risk profile. Investors can request their portfolio be liquidated (in whole or in part) at any time, though Vinovest says it can take 6 weeks or more to find buyers for all of the wine.

Breadth of offerings on Vinovest

The primary offering from Vinovest is a managed portfolio of wines. Investors fill out a personalized quiz on what their risk/return profile is, how much they would like to invest, etc. and Vinovest constructs a diversified portfolio of wines and actively source, store, and insure the customer wines. Vinovest will also manage buy/sell recommendations. Here’s how Vinovest describes the sources of their wines:

We source our wines direct from wineries, global wine exchanges, and merchants. Because of this, we have better transparency into the market and will always buy and sell your wines at a fair market value.

Investors with some experience in fine wine investing can also construct their own portfolio, picking which wines they want to invest in. That option requires a higher minimum investment ($50K vs. $5K).

Regulatory framework and due diligence expectations

Because you’re purchasing actual bottles of wine, rather than a security, the transaction is not governed by SEC rules as with most of the investment crowdfunding and online alternative investment platforms we review.

You may be able to invest in Vinovest using a Self-Directed IRA or 401K. To learn more about using a Self-Directed retirement account for alternative investments, visit our friends at Rocket Dollar.